Cars’ Sales Decline in 2011 due to Security Dissorder

Cars division in the commercial chambers’ federation said that sales volume of cars has declined to 170,000 within 2011, and till March 2012, as the compared figure of the year 2010-2011 was ranging from 250 to 270 thousand cars.

The division linked between this decline and security disorder witnessed in Egypt after the revolution, as it resulted in the worsened situation of the Egyptian economy.

Effat Abd El aaty – Division’s president- mentioned the difficulty of defining the car’s profitability, because of the existence of unlicensed traders, and the fluctuations of currencies used in foreign purchasing.

Effat said that achieving a stable and fair system between the state and traders -regarding payment of taxes- requires many factors, such as the availability of traders’ systematic books, where all selling and purchasing transactions get recorded, beside the existence of typical licenses required for showrooms.

On the other side, Effat cautioned of submerging the Egyptian Market with Chinese cars, as he pointed that these cars were imposed on the market strongly, within the last 4 years, because of their low prices, and their minimized fuel consumption, if compared with other cars.

He also mentioned that prices of cars in Egypt, can’t be reduced to the same extent of Chinese cars, because these Chinese cars are supported from abroad, and they have access to the Egyptian market according to the International agreements.